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Solar owners stand up to the Arizona Corporation Commission for fair payback rates

By
Updated  October 11, 2023 6:00pm MST
Arizona
FOX 10 Phoenix

Hundreds of people crowded into the Arizona Corporation Commission (ACC) meeting as many are extremely upset about potential changes to solar rates that could deliver a financial hit to both solar customers and solar businesses.

The line was out the door on Oct. 11 to get into the meeting. People were concerned and passionate about the possibility that the rules around solar energy rates were going to change.

Residents who own rooftop solar panels are scared that their expensive investment is going to become an expensive liability.

"They're currently paying 10 cents. You're forcing them to sell it for 7.6," an audience member said.

Homeowners with rooftop solar essentially sell the extra electricity their system generates to the utility company. The rate is decided by the ACC.

Solar payback rates in limbo as residents attend ACC meeting

Previously, homeowners could get enough credits to lower their electricity bill and maybe even make money, but the rates keep changing.

Thousands of Arizonans want the commission to leave it alone.

"We've received over 3,000 comments," ACC Chairman Jim O'Connor said to a cheering crowd.

Even Tesla, a California-based company, chimed in virtually.

"The current framework provides an imperfect but balancing of interests," a Tesla spokesperson said.

Only a few people wanted the commission to re-open the solar value debate.

"We should have more say. We're creating money for them. We think we're getting the deal, when we are giving them the deal, and we're not realizing that," an audience member said.

The uncertainty over solar rates has negative impacts on both customers and businesses, who say the ACC's decisions hinder the solar industry in a state with no shortage of sunlight.

"It's made the financial a lot tougher, it makes people skittish. ‘Do I want to invest this much money in it?’" Louis Woofenden with Net Zero Solar said. "Am I going to be able to keep the 16 people employed at my business, am I going to be able to keep them all?"

Ultimately, Woofenden said, "We are at the mercy of public policy here at the Arizona Corporation Commission."

The commissioners voted 3-2 to open a new miscellaneous docket to explore changes to the 10% reduction and 10-year lock-in.